Marvell Technology, Inc. (NASDAQ:MRVL) shares are trading lower Monday after Benchmark downgraded the stock from a Buy rating to a Hold rating.
- Marvell Tech stock is feeling bearish pressure. What’s pressuring MRVL stock?
What To Know: Benchmark cut its rating after the firm came away from two days of industry meetings with increased conviction that Marvell has lost Amazon's Tranium 3 and 4 designs to Taiwan-based competitor Alchip. Analysts at Benchmark said the shift appears tied to Amazon licensing Tranium 3 and Tranium 4 SERDES from Synopsys instead of relying on Marvell, as well as Amazon working with Alchip on design, foundry and backend support.
Benchmark said it expects this dynamic to be the primary factor behind Marvell's projected slowdown to roughly 20% XPU growth in calendar year 2026. While Marvell recently said it does not expect a revenue "air pocket" next year with its lead XPU customer, Amazon, Benchmark believes that visibility is driven by expected Tranium 2 volumes and a Kuiper low-earth orbit engagement rather than a successful transition to Tranium 3.
The firm added that Amazon's announced Tranium 3 is currently only the air-cooled version for customer evaluation, with the liquid-cooled variant not expected until at least mid-2026. Benchmark believes Tranium 2 volumes will continue to support Marvell's near-term forecasts.
Benchmark also noted that Marvell's outlook for renewed XPU growth in fiscal 2028 reflects expectations for a new hyperscaler engagement ramping in subsequent years. With shares performing strongly following earnings, the firm recommended that investors take near-term profits.
MRVL Analysis: The stock opened at $90.45, reached a high of $92.61 on Monday, before dipping to a low of $88.92 during the trading session, indicating significant volatility. The trading volume was notably high at 24.8 million shares, suggesting heightened investor activity and interest amid the price decline.
From a technical perspective, Marvell is currently trading approximately 2.3% above its 50-day moving average, which could indicate a potential support level. However, it is trading 21.3% below its 200-day moving average, highlighting a longer-term bearish trend that may concern investors. The stock’s 52-week range of $47.08 to $127.48 further illustrates the volatility and potential for price swings.
The recent drop in share price may have breached key support levels, with immediate support potentially found around the low of $88.92. If this level fails to hold, further downside could be anticipated, possibly testing the psychological level of $85. Conversely, resistance is likely to be encountered around the recent high of $92.61, which traders may watch closely for signs of a rebound.
See Also: Broadcom Stock Rides Market Momentum As Marvell Faces Microsoft, Amazon Setbacks
MRVL Price Action: At the time of writing, Marvell shares are trading 6.53% lower at $92.38, according to data from Benzinga Pro.
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